"THQ is in the process of transitioning its portfolio away from licensed kids titles and movie-based entertainment properties for consoles and has also decided not to actively pursue further development of the MX vs. ATV franchise at this time," the company said in a statement.
THQ Digital Studio Phoenix developed MX vs. ATV Alive, while Brisbane-based THQ Studio Australia worked on licensed titles like Megamind: Ultimate Showdown and Avatar: The Last Airbender - Into the Inferno. Melbourne-based Bluetongue developed the de Blob series for THQ, as well as Marvel Super Hero Squad.
The publisher still has five internal studios remaining: THQ Montreal (working on an unannounced new IP), Volition (Saints Row: The Third, inSANE), Relic Entertainment (Warhammer 40,000: Space Marine), Vigil Games (Darksiders II, Warhammer 40,000: Dark Millennium Online), and THQ San Diego (WWE All-Stars).
The moves come just weeks after THQ reported disappointing second quarter results, with a net loss of $38.4 million for the three months. However, executives expressed confidence at the time that the company could return to profitability in the back half of the year. THQ has Warhammer 40,000: Space Marine lined up for the current quarter, with Saints Row: The Third, the Xbox 360 and PlayStation 3 uDraw tablets, WWE 12, and UFC Undisputed 3 set for launch by the end of its fiscal year on March 31.